On July 24, 2026, Ecuador and Canada formally signed a Free Trade Agreement (FTA) in Canada, marking the conclusion of more than two years of negotiations between the two countries. Ecuador’s Vice Minister of Export and Investment Promotion, Roger Crespo, had announced the news on July 21, describing the signing as “an important milestone in bilateral relations.”
Negotiations for the agreement began in April 2024 and, after six rounds of intensive consultations, were declared technically concluded on February 4, 2025. On May 24, 2025, during the inauguration ceremony of Ecuadorian President Daniel Noboa, the two countries signed a joint statement to accelerate the formal signing of the agreement. With this signing, Canada becomes Ecuador’s latest free trade partner, following existing agreements with the European Union, the United Kingdom, China, and the European Free Trade Association.
According to the agreement, once fully implemented, Ecuador will eliminate tariffs on 97.2% of tariff lines, while Canada will eliminate tariffs on 98.1% of tariff lines. Ecuador’s Ministry of Production, Foreign Trade, Investment and Fisheries further stated that 99.6% of Ecuadorian exports will enjoy zero-tariff access to the Canadian market.
Regarding Ecuador’s exports to Canada, a wide range of products will benefit from immediate tariff elimination: textiles and clothing from 18% to zero, canned vegetables from 17% to zero, mineral water from 11% to zero, sardines from 11% to zero, roses from 10.5% to zero, confectionery from 10% to zero, furniture from 9.5% to zero, flowers and buds from 8% to zero, ceramics from 7.5% to zero, and chocolate from 6% to zero. Key agricultural products such as shrimp, cocoa, bananas, and tuna are also included in the list of beneficiaries. At the same time, Canadian exports to Ecuador will also enjoy tariff reductions, including wheat, pharmaceuticals, mobile phones, laptops, cleaning supplies, fertilizers, industrial heavy vehicles, and drones.
The agreement also covers a wide range of areas, including trade in services, investment, digital trade, telecommunications, government procurement, financial services, trade facilitation, state-owned enterprises, and dispute settlement mechanisms. In addition, the agreement specifically includes chapters on labor rights, environmental protection, gender equality, indigenous participation, and the development of small and medium-sized enterprises. Regarding sensitive products, Ecuador successfully excluded agricultural products such as rice, corn, sugar, dairy products, as well as beef, pork, and poultry from the liberalization scope.
In terms of economic impact, the agreement will open up the Canadian market, which has nearly 40 million consumers with high purchasing power. In 2025, Ecuador’s exports to Canada amounted to approximately US$563 million, while imports stood at about US$478 million, achieving a trade surplus of roughly US$85 million. Total bilateral trade in goods exceeded 2.1 billion Canadian dollars, and Canada’s direct investment in Ecuador reached approximately 5 billion Canadian dollars, mainly concentrated in the mining and natural resources sectors. Experts expect that the agreement will promote employment growth in Ecuador, attract more investment, and expand the supply of products in the market.
Following the signing, the agreement will need to undergo the respective legal approval procedures of both countries before it can officially enter into force, with implementation expected by the end of 2026 or early 2027.